The European Central Bank posted an analysis of the economic effects of a trade war. According to MarketWatch:
The U.S. economy could shrink by about 2% in the first year of an all-out trade conflict with the rest of the world, while China and other economies could gain, according to new research published Wednesday by the European Central Bank.
In a research bulletin published Wednesday, ECB economists modeled a scenario in which the U.S. raises tariffs on all of its imports by 10 percentage points, and its trading partners retaliate with an equivalent tariff increase on their U.S. imports. Other countries don’t retaliate against each other in the model.
China plans to push growth of parts of its tech industry. According to Reuters:
China’s state planner on Wednesday called for further advancement in the country’s $3.8 trillion digital economy, saying sectors such as big data and artificial intelligence (AI) will become drivers of job creation.
The Chinese economy is in the midst of a long-term restructuring that has seen the decline of low-end industries and the emergence of higher-value factories that make robotics and drones.
“China will promote the digital transformation of traditional sectors, driving more workers to switch jobs and improve the quality of employment,” the National Development and Reform Commission (NDRC) said.
CBS Corp. (NYSE: CBS) named a former media executive as its interim chairman. According to The Wall Street Journal:
CBS Corp.’s board of directors has named Richard Parsons interim chairman, and two other longtime directors have resigned, in the latest significant change in the broadcaster’s ranks, the company said Tuesday.
A former chairman and chief executive of Time Warner Inc., Mr. Parsons only joined the CBS board a few weeks ago after Leslie Moonves stepped down as chairman and chief executive amid sexual misconduct allegations.
Nike Inc. (NYSE: NKE) posted a sharp rise in sales. According to The Wall Street Journal:
Nike Inc. posted a 10% increase in sales during the summer quarter, riding strong consumer spending in the U.S. and healthy demand outside its home market for the brand’s sneakers and athletic apparel.
Chief Executive Mark Parker said in an earnings call on Tuesday that the growth was “broad-based,” attributing the results to the company’s efforts across product categories and in several markets across the globe.
Payment on U.S. debt could soon be higher than expenditures on the military. According to The New York Times:
The federal government could soon pay more in interest on its debt than it spends on the military, Medicaid or children’s programs.
The run-up in borrowing costs is a one-two punch brought on by the need to finance a fast-growing budget deficit, worsened by tax cuts and steadily rising interest rates that will make the debt more expensive.
Financial firms want cryptocurrency regulations. According to CNBC:
The cryptocurrency industry has a plea for Congress: Hurry up and regulate, please.
More than 50 industry participants gathered on Capitol Hill for a roundtable discussion hosted by Rep. Warren Davidson, R-Ohio, Tuesday. Although attendees varied, none were from anti-establishment groups popular in the cryptocurrency space, nor did they include retail investors who bought bitcoin as a speculative bet.
Instead, experts from Fidelity, Nasdaq, State Street, Andreessen Horowitz, and the U.S. Chamber of Commerce filled a room in the Library of Congress. There, they politely but firmly addressed what they deemed unsolved issues as Davidson prepares to introduce a related bill this fall.
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